Google to Buy Motorola Mobility for $12.5 Billion

Google announced on Monday that it would acquire Motorola Mobility Holdings for $40 a share, or $12.5 billion. The offer is the search engine giant’s largest acquisition in its history.

Motorola Mobility — which is different from Motorola — manufactures cell phones that run Google’s popular Android software. The Android platform, which launched in 2007, is currently the most widely used mobile operating system in the United States. More than 150 million devices use the Android OS, and over 550,000 new device activations occur ever day.

“We expect that this combination will enable us to break new ground for the Android ecosystem,” Andy Rubin, senior vice president of mobile at Google, stated. “However, our vision for Android is unchanged and Google remains firmly committed to Android as an open platform and a vibrant open source community. We will continue to work with all of our valued Android partners to develop and distribute innovative Android-powered devices.”

If approved, the acquisition would turn Google into a full-fledged cell phone manufacturer, one that is in direct competition with Apple, maker of the iPhone. The deal is likely to face significant scrutiny from the government. Although the Federal Trade Commission is already investigating Google’s dominance in several fields, the company said it was confident it will win regulatory approval.